The first-quarter results were propelled by Bayanat's sustained emphasis on the company's core segments and advancements in Artificial Intelligence capabilities.
Bayanat, the AI-powered geospatial solutions provider listed on the Abu Dhabi Securities Exchange (ADX), has announced its first-quarter financial results for 2024, showcasing robust growth and strategic advancements.
In Q1 2024, Bayanat recorded a revenue of $30.77m, reflecting a noteworthy 12% increase compared to the same period last year. The revenue surge can be attributed to the company’s expanded market presence and the strong performance of its product range and service offerings. With a steadfast commitment to deploying world-class AI solutions and enhancing geospatial services, Bayanat continues to meet the evolving needs of its clients effectively.
The gross profit for Q1 2024 stood at $30.77m, resulting in a gross margin of 28%. This achievement underscores Bayanat’s focus on key segments such as Smart Operations Solutions (SOPS), Smart Mobility Solutions (SMOS), and Smart Geospatial Solutions (SGS). Furthermore, the HAPS technology by Mira Aerospace, a joint venture between Bayanat and UAVOS, along with the company’s AI and geospatial solutions, significantly contributed to this quarter’s profitability.
EBITDA for the quarter reached $2.18m, reflecting a margin of 7%. Despite the short-term impact of significant investments in research and development (R&D) and talent acquisition, Bayanat remains committed to expanding its product portfolio and driving future revenue growth in alignment with its IPO strategy.
Net profit after tax reached $2.72m, with a net margin of 9%. Apart from EBITDA performance, Bayanat benefited from substantial financial income generated by prudently investing excess cash in responsibly managed financial instruments. The company has initiated the recording of a provision for Corporate Tax on its 2024 taxable income in compliance with relevant UAE Federal Decree-Laws.
Bayanat maintains a debt-free status while strategically utilising its cash reserves to enhance capabilities and operational efficiency. With a robust cash balance of $176.42m, the company is well-positioned for both organic and inorganic expansion initiatives.
Throughout the quarter, Bayanat achieved significant milestones in line with its strategic objectives. The company forged expansive agreements and partnerships, exemplified by several Memoranda of Understanding signed at DRIFTx, an international summit dedicated to smart and autonomous mobility. These partnerships underscore Bayanat’s commitment to innovation and leadership in the mobility sector.
Additionally, Bayanat continued its support for the Abu Dhabi Smart Mobility project, emphasising its dedication to advancing smart infrastructure solutions. The company also intensified its R&D efforts, resulting in the optimisation and expansion of its product offering, including the AI-enabled disaster management platform, AID. This platform played a crucial role during heavy rainstorms in the UAE by providing valuable data and analytics to relevant authorities.
A pivotal highlight of the quarter was Microsoft’s strategic $1.5bn investment in G42, the Abu Dhabi-based AI technology holding company and Bayanat’s majority shareholder. This investment strengthens Bayanat’s position, granting direct access to Microsoft’s advanced AI services and positioning it at the forefront of the geospatial intelligence sector with next-generation AI solutions, redefining industry standards for innovation and operational efficiency.
Hasan Al Hosani, Managing Director of Bayanat, said: “Our ability to not only sustain but significantly build upon last years exceptional financial milestonesurpassing AED 1bn in revenues for the first time in our history is a clear indication of our teams strength and our forward-thinking strategic vision. The significant growth in our revenue highlights our solid market positioning. Importantly, we have continued to achieve robust profitability while strategically amplifying our investments in R&D. This focus is pivotal as it enhances our product offerings and operational excellence, fully aligning with our steadfast commitments to innovation and the investor community.
“As we continue to realise our ambitions to become a leader in the burgeoning global SpaceTech industry, we remain firmly focused on driving growth and enhancing shareholder value. I am confident that we will continue our positive momentum and deliver even greater success for the remainder of 2024 and beyond.”
Both Bayanat and Yahsat continue to work on the merger to create SPACE42. The newly formed company will combine Yahsat’s advanced Satellite communication capabilities and Bayanats Geospatial data analytics expertise to create an AI-powered MENA space technology champion with global. The merger was approved by each companys respective General Annual Meetings on April 25, 2024, and is expected to be effective in the second half of 2024.
